Microsoft announces intent to expand datacenter operations in Cheyenne, accelerating innovation and economic growth

CHEYENNE, Wyo. - April 14, 2026 - Microsoft Corp. on Tuesday announced its intent to purchase approximately 3,200 acres of land to develop a datacenter in Cheyenne, Wyoming. This expansion builds on Microsoft's existing datacenter footprint in Cheyenne, strengthening Southeast Wyoming's role as a growing hub for technology-driven economic activity, innovation and job creation.

"Since the development of our first datacenter in 2012, Microsoft has been working to strengthen, not strain, the community of Cheyenne," said Bowen Wallace, Corporate Vice President, Datacenters-Americas Region, Microsoft. "We're excited to continue our growth in the state bringing more investment, opportunity and tax revenue to the community we've been a part of for more than 14 years."

The future expansion is made up of two parcels, approximately 200 acres located in Bison Business park on Wapiti Trail east of S Greeley Highway, and 3,000 acres in Southeast Cheyenne, adjacent to the 200-acre parcel accessible through Wapiti Trail, both located southeast of downtown Cheyenne.

Today's announcement represents the start of what the company expects to be a multiyear planning and development process. There are many steps in that process, including several that require public hearings. Microsoft welcomes these formal opportunities to engage with the community and looks forward to additional informal opportunities to hear directly from residents, and ultimately ensure development plans, operations and community investments are aligned with local values, aspirations, strengths and needs.

Microsoft has committed over $68M in completed and future off-site infrastructure improvements across Cheyenne. Projects like roadway and storm sewer improvements, trail roadway and greenway improvements, new pump stations, and improved municipal water infrastructure are critical for datacenter operation, but they also make up the infrastructure systems that Cheyenne residents use every day.

"This is the latest in a long line of investments that Microsoft has brought to the city of Cheyenne as a member of our community since 2012," said Mayor Patrick Collins. "Microsoft recognizes the strength of our city's workers, infrastructure and economy. This expansion represents the next decade of opportunity and tax revenue that secures the quality of life that residents of our city enjoy." 

In any future development, the community of Cheyenne can expect the following:

Microsoft will pay its way to ensure datacenter development doesn't increase electricity prices. Microsoft and Black Hills Energy have developed an innovative utility partnership in Wyoming, in which power acquisition is guided by the Large Power Contract Service (LPCS) tariff. The tariff requires Microsoft to directly pay for all the infrastructure upgrades and power procured by the utility necessary to serve its load.

"We have been a proud partner with Microsoft for more than a decade in Cheyenne, providing energy solutions and mission-critical electric reliability to its data center operations," said Wes Ashton, Black Hills Energy Vice President of Utilities in Wyoming and South Dakota. "That partnership supports economic growth in Wyoming, and our flexible and innovative tariff provisions allow us to meet Microsoft's expanding energy needs while protecting base retail customers from rate impacts."

Microsoft will continue to work to bring additional wind and other carbon-free electricity to the Western Electricity Coordinating Council (WECC), ensuring that every kilowatt hour the company's operations consume that comes from a fossil fuel source is matched one for one with carbon-free energy the company procures.

Microsoft will minimize its water use and replenish more water than what is used. The chips housed within a datacenter produce heat. Microsoft's existing facilities in Wyoming leverage direct evaporative cooling to cool those chips. This design uses water for cooling less than 10% of the year, with the latest datacenter designs going even further, in some cases eliminating the need for ongoing access to water for cooling after an initial fill. At the same time, Microsoft will continue to work to replenish water in the Mississippi-Missouri and Colorado River Basins. This work will build on both existing and future replenishment projects Microsoft has funded in Cheyenne that are expected to restore an estimated 566M gallons of water with the help of partners like Trout Unlimited, Frog Creek Partners, the Laramie County Conservation District and the U.S. Forest Service.

Microsoft will create jobs for residents. This infrastructure build-out will require thousands of skilled tradespeople during construction. For more than a decade, nearly 2,000 of them have already played a part in building Microsoft's existing datacenter footprint, and this expansion represents years of additional work. Electricians, plumbers and pipefitters, carpenters, structural iron and steel workers, concrete workers, and earth movers will build a career developing the next generation of infrastructure in Cheyenne.

In addition to careers in construction, this expansion represents hundreds of full-time opportunities in areas like information technology (IT), security and maintenance to operate these facilities. Microsoft is working to make sure that members of the local community are prepared to step into these full-time roles. In 2019, Microsoft launched a Datacenter Academy in partnership with Laramie County Community College (LCCC). On the campus of LCCC, the Academy includes a working laboratory and has trained over 1,000 students.

This expansion isn't just about the over 220 full-time Microsoft employees currently working in Cheyenne, or the hundreds more expected in the years ahead. It's about the broader opportunity that this investment can help unlock across the region with jobs in other industries like power generation and transmission, retail, maintenance and repair, real estate, and other local industries and careers that will benefit from Microsoft's presence for the next decade and beyond.

Microsoft will add to the tax base. One of the most tangible benefits from datacenter development, but invisible to those driving nearby, is improvements to community schools, hospitals and services due to property taxes paid by datacenter operators to the local municipality. In 2025, Microsoft datacenters contributed over $11M to the Laramie County tax base, supporting the budgets for local hospitals, schools, parks and libraries. Last year, Microsoft was the No. 1 taxpayer in the city of Cheyenne and No. 2 taxpayer in Laramie County. This property tax revenue will continue to grow with the envisioned development on these new sites.

Microsoft will strengthen the community by investing in local IT training and nonprofits. Microsoft's commitment to Cheyenne is reflected in sustained, multiyear community investment. Since 2018, Microsoft has supported 56 community projects from 28 local organizations supporting education, workforce development and community services. Collectively, Microsoft has already donated $4.7 million to local organizations and nonprofits, including through programs like Microsoft TechSpark. Working with Laramie County Community College, and local organizations like Rooted in Cheyenne, the Boys and Girls Club of Cheyenne, the Wyoming Community Foundation, and many others, Microsoft will continue to invest in the Cheyenne community and support high-impact opportunities that advance prosperity in Wyoming.

Microsoft is committed to being a good neighbor and active community member anywhere that it builds, owns or operates facilities. Today's announcement may not provide all the answers to the questions residents of Cheyenne will have. More specific information will be shared during the multiyear planning and development process. We look forward to growing together.

Microsoft (Nasdaq "MSFT" @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

For more information, press only:

Microsoft Media Relations, We. Communications, (425) 638-7777, [email protected]

Note to editors: For more information, news and perspectives from Microsoft, please visit Microsoft Source at https://news.microsoft.com/source. Web links, telephone numbers and titles were correct at time of publication but may have changed. For additional assistance, journalists and analysts may contact Microsoft's Rapid Response Team or other appropriate contacts listed at https://news.microsoft.com/microsoft-public-relations-contacts.